The Enduring Impact of Transient Emotions on Decision Making
34 Pages Posted: 18 Feb 2009 Last revised: 1 Oct 2009
Date Written: February 16, 2009
People often do not realize they are being influenced by an incidental emotional state. As a result, decisions based on a fleeting incidental emotion can become the basis for future decisions and hence outlive the original cause for the behavior (i.e., the emotion itself). Using a sequence of ultimatum and dictator games, we provide empirical evidence for the enduring impact of transient emotions on economic decision making. Behavioral consistency and false consensus are presented as potential underlying processes.
Keywords: emotion, mood, affect, feelings, decision making, negotiation, ultimatum game
JEL Classification: Z00
Suggested Citation: Suggested Citation